Yahoo Finance Danimer Scientific, Inc. (NYSE:DNMR) insiders are still down US$60k after purchasing last year, recent gain helped regain some losses
Insiders who bought US$101k worth of Danimer Scientific, Inc. (NYSE:DNMR) stock in the last year have seen some of their losses recouped as the stock gained 20% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled US$60k since the time of purchase.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Danimer Scientific
The Last 12 Months Of Insider Transactions At Danimer Scientific
The Independent Director Phillip Calhoun made the biggest insider purchase in the last 12 months. That single transaction was for US$101k worth of shares at a price of US$14.16 each. That means that even when the share price was higher than US$5.66 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Phillip Calhoun was the only individual insider to buy during the last year.
The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Danimer Scientific is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 13% of Danimer Scientific shares, worth about US$75m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Danimer Scientific Tell Us?
The fact that there have been no Danimer Scientific insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Danimer Scientific and their transactions don't cause us concern. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that Danimer Scientific is showing 4 warning signs in our investment analysis, and 1 of those doesn't sit too well with us...
Of course Danimer Scientific may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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